Cost no object for Koreans

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It is the world's fastest-growing brand and one of the biggest spenders on advertising, so why should Samsung worry about cost when conducting a review of its global communications?

By August, Samsung is expected to name the global holding company that will handle every area of the $780 million that the electronics giant spends on advertising and marketing worldwide.

It follows hot on the heels of HSBC, which last month started a trend by giving the WPP Group of London its $600 million advertising account after holding a pitch among the biggest communications conglomerates.

But Samsung's regional chief says it's less about the cost of advertising and marketing and more about finding the best way to shift Samsung from its roots as a Korean electronics leviathan to a smart and sexy premium brand.

"Cost is the least consideration here," said South-East Asia and Pacific CEO and president Park Sang Jin. "It's about having the right strategy. We are strengthening our marketing activities worldwide and we are going to have a bigger budget."

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In Australia alone, it has ramped up its budget by 100 per cent to $30 million and, with world revenues expected to grow by 50 per cent this year, it is ploughing more money into marketing.

It has to if it is to catch up with archrival Sony. "If Sony brought out as many innovative products as Samsung and spent as much as we do, then the gap could not be reduced," Mr Park said. Sony spends about $6 million in Australia.

WPP and the French Publicis Groupe will travel to Seoul this month for the final stages of the pitch. While Mr Park acknowledged the Interpublic-owned FCB has done a "remarkable job", he said Samsung needed a "fresh approach, as we are in a new dimension".

Interbrand named Samsung as the fastest-growing brand for two years in a row and this year Mr Park predicts its brand assets will rise 10 per cent to $12 billion.

Whoever wins the account will be in the unique position of working for Samsung's in-house communications company Chiel, which produces local campaigns and adapts international work.